2 types of planned economies and the difference between them
1. Command Economy: In a command economy, the government makes all decisions regarding production, distribution, and consumption of goods and services. The government sets production targets, allocates resources, and decides on the prices of goods and services. This type of planned economy is characterized by central planning and strict government control over all economic activities.
2. Mixed Economy: In a mixed economy, the government plays a significant role in regulating the economy, but there is also room for private enterprise and market forces to operate. The government sets goals and policies for key industries and sectors, but allows for competition and private ownership in other areas of the economy. This type of planned economy combines elements of both central planning and market principles, allowing for a more flexible and dynamic economy.